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Conceptual And Applied Problems With The Uk Competition Filter

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  • Sean Lyons
  • Francis O'Toole

Abstract

Under the UK system of regulatory impact assessment, proposed legislation is subject to a negative clearance test to identify measures that risk significant harm to competition. Known as the “competition filter,” the test attempts to exempt low-risk measures from detailed scrutiny, that is, a competition assessment. This article describes how the competition filter suffers from a number of significant conceptual problems. In addition, this article demonstrates that the competition filter would allow important classes of potentially damaging regulations that have previously attracted criticism from the Office of Fair Trading. Finally, some improvements to the competition filter are proposed.

Suggested Citation

  • Sean Lyons & Francis O'Toole, 2006. "Conceptual And Applied Problems With The Uk Competition Filter," Journal of Competition Law and Economics, Oxford University Press, vol. 2(4), pages 683-696.
    • Handle: RePEc:oup:jcomle:v:2:y:2006:i:4:p:683-696.
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    File URL: http://hdl.handle.net/10.1093/joclec/nhl019
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    References listed on IDEAS

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    1. Sean Lyons, 2005. "Testing which proposed regulations need competition-proofing," Trinity Economics Papers tep20020, Trinity College Dublin, Department of Economics.
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    Cited by:

    1. Gorecki, Paul K., 2009. "The Recession, Budgets, Competition, and Regulation: Should the State Supply Bespoke Protection?," Papers BP2010/2, Economic and Social Research Institute (ESRI).

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    1. Gorecki, Paul K., 2009. "The Recession, Budgets, Competition, and Regulation: Should the State Supply Bespoke Protection?," Papers BP2010/2, Economic and Social Research Institute (ESRI).
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